oil workers

By Marie-Sol Reindl - Open Democracy, February 11, 2022

Don’t be fooled by Shell’s green rebrand. The company is still deeply undemocratic and destroying the environment.

It has been a turbulent year for the oil and gas giant Shell.

Last May, Dutch courts ruled that Shell must drastically reduce its carbon emissions. In October, ABP, a major shareholder, divested from the company. The following month, the firm announced plans to move its headquarters from the Hague to London and drop its iconic prefix, ‘Royal Dutch’ (the company is now just Shell plc). And, in recent weeks, it has come under fire for its mammoth 14-fold increase in quarterly profits, having made $16.3bn (£12bn) pre-tax profit in the last quarter of 2021, while gas prices surged across Europe.

Now, as Shell presents itself as a global leader in the green energy transition, it is still actively investing in new oil and gas drilling.

But that is not the company’s only problem.

For a start, Shell’s profit-maximising business model is deeply undemocratic, benefitting top management and shareholders at the expense of communities around the world. The firm has also not reckoned with its colonial past and severe human rights violations, while its privileged access and influence over political decision-making processes are an obstacle towards building a democratic and green energy system. And, finally, its investment in ‘innovation’ is primarily dependent on gas and carbon capture, which keeps the world locked into a fossil fuel future.

While many agree that ending fossil fuel extraction is necessary, questions remain over how to dismantle oil and gas giants such as Shell. These companies will certainly not stop polluting of their own volition – so governments and civil society must take strategic action to force them to do so.

Can this be done via carbon pricing, bankruptcy, strategic litigation or nationalisation? When assessing these mechanisms, it’s critical to consider how – and if – they would reckon with the corporation’s colonial legacy and safeguard labour rights to build a fairer and regenerative energy system.

By Haley Zaremba - Oil Price, February 9, 2022

• The global energy transition may have hit a snag in 2021, but it’s clear that it is a force that will not be stopped
• A loss of respect, opportunity, and income in coal country has led to severe political fissures and a growing feeling of underappreciation for coal miners. 
• While phasing out fossil fuels is crucial, so too is supporting and acknowledging the contributions, needs, and priorities of the many workers and communities who stand to lose everything in the energy transition.

By Anne C Mulkern - Energy Wire, January 31, 2022

California officials are brainstorming how to help oil industry workers as the state moves to phase out fossil fuels and replace gasoline-powered vehicles with electric cars.

Democratic Gov. Gavin Newsom’s office and legislators are talking to unions representing industry workers, and a new state Assembly document outlines potential solutions. But it’s a complex quandary, raising questions about whether to guarantee workers their current salaries and benefits as their jobs disappear.

“One of the major hurdles in transitioning existing fossil fuels activities to clean energy ones has been the potentially negative economic consequences to workers and communities,” according to a document from the Assembly Office of Policy and Research obtained by E&E News. “As the state implements its ambitious climate goals, there is an opportunity to assist workers impacted by the transition to a green economy.”

Nearly 112,000 people work in 14 fossil fuel and ancillary industries in California as of 2018, according to a report last year from the Political Economy Research Institute (PERI) at University of Massachusetts, Amherst. The total includes oil and gas extraction operations, and support activities, and sectors such as fossil-fuel-based power generation.

What California decides to do about oil industry workers has the potential to ripple beyond the nation’s most populous state, said Catherine Houston, legislative, political and rapid response coordinator with United Steelworkers District 12.That union represents many oil industry workers.

“California typically takes the lead in a lot of these types of things, and we become an example for other states across the nation,” Houston said. “So whatever we do can potentially serve as a federal model.”

By Dan Bacher - CounterPunch, January 28, 2022

The Western States Petroleum Association (WSPA), the most powerful corporate lobbying group in Sacramento, claims that there are 368,000 jobs in the oil and gas industry in California.

“The oil and gas industry is a vital part of California’s energy mix,” WSPA stated on their website. “As a leading economic force and major employer, we proudly contribute to communities across the state, providing more than 368,000 jobs in CA.” www.wspa.org/…

But a just-released Food & Water Watch analysis counts just 22,000 jobs in the industry in California, based on Department of Labor statistics — and says this total has dropped 40 percent over the past decade.

“Overall, oil and gas production account for barely one-tenth of 1 percent of all employment in California,” the analysis revealed.

WSPA spent a total of $4,267,181 on lobbying California legislators and officials in 2020 and $8.8 million in 2019 as thousands of oil and gas drilling permits were approved by CalGEM, the state’s oil and gas regulatory agency: www.citywatchla.com/…

The research from the environmental organization Food & Water Watch debunks fossil fuel industry claims about job creation throughout the U.S. showing that “overall employment has suffered even as production has increased.”

“When Gov. Gavin Newsom announced modest plans to phase out permitting for new oil production in California, industry advocates freaked out,” according to the analysis. “The Western States Petroleum Association claimed that the oil industry supports close to 368,000 jobs in the state. That is surprising since, according to the Bureau of Labor Statistics, only 22,000 Californians were involved in oil production in 2020, down 40 percent from the industry’s peak in 2012. In the Golden State, oil and gas production accounts for barely one-tenth of 1 percent of all employment.”

The analysis notes that one of the most misleading aspects of industry jobs analysis is the conflation of direct jobs with indirect and induced jobs.

“Direct jobs are positions directly within a given industry. Indirect jobs are those within the supply chain that supports that industry, while induced jobs are positions supported by wages from both direct and indirect jobs. Indirect and induced jobs account for nearly 75 percent of the top-line numbers that some oil and gas companies are referencing. Misattributing these jobs to the oil and gas industry itself distorts the size and scope of the industry’s payroll,” the analysis noted.

As the state continues to suffer from devastating fires and drought and salmon, Delta smelt and other fish species continue on the path to extinction, both the state and federal governments continue to approve oil and gas well permits in California.

By Staff - Gender Equity Policy Institute, January 23, 2023

California’s ambitious climate goals, supported by state and federal investment, will create enormous economic opportunity over the coming decades. To meet the 2045 target of carbon neutrality, a 100% clean electric grid, and a 90% reduction in oil consumption and refinery production, the state will need to modernize its electrical grid and build storage capacity to meet increased demand for electricity. Carbon management techniques, plugging orphan wells, and the development of new energy sources such as geothermal will all come into play, providing economic opportunities to workers and businesses alike. Reducing use of polluting fossil fuels will likewise result in significant health benefits to Californians, especially to communities disproportionately burdened by polluting enterprises and proximity to freeways.

Supported by state investment and federal funding through the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, the actions necessary to tackle the challenges of climate change are projected to create 4 million new jobs in the state. California is investing in developing the clean energy workforce, with an equity commitment to recruit and train historically disadvantaged and under- represented communities.

Decarbonizing the economy and accelerating the adoption of clean energy is necessary if we are to preserve a habitable planet. Progress to a carbon neutral future is already well underway in the state. Wind and solar power are less expensive than natural gas or coal powered electricity. A large majority of Californians are concerned about climate change and support action to address its impacts.

However, as with all sectoral economic change, some industries will grow and thrive, while others will shrink, leaving some of their workers behind. Labor unions and trades groups are rightly concerned that workers are not forced to abandon skills developed over their careers and thrown into an inhospitable labor market with no support.

Thus, a key challenge in meeting California’s climate action goals is to devise a fair, equitable, and empirically-based policy to provide support for workers at risk of unemployment and income loss as many factors combine to reduce demand in state for oil and gas products.

By various Russian anarcho-syndicalists and anarchists - International Workers Association, January 13, 2022

Statement by Russian anarcho-syndicalists and anarchists on the situation in Kazakhstan

We, Anarcho-syndicalists and Anarchists of Russia express our full and complete solidarity with the social protest of the working people of Kazakhstan and send them our comradely greetings!

The current explosion of social protest in Kazakhstan, one of the most outstanding and brightest since the beginning of the new century, has become the apogee of the wave of the strike struggle of oil workers and other categories of workers in the country, which has not stopped since last summer.

The working people of Kazakhstan gradually recovered from the terrible massacre of the proletarians, organized in 2011 by the dictatorial regime of Nazarbayev, and began to consistently seek higher wages and the ability to create trade unions and other workers' associations. The poverty of the majority of the population, the cruel exploitation of labor, the rise in prices, daily oppression and lack of rights made the position of the working person unbearable and forced him to rise to protest actions.

The last straw was the layoffs of tens of thousands of oil workers in December 2021, the introduction of a "sanitary" dictatorship under the pretext of "fighting the pandemic" and a draconian increase in gas prices. On January 3, a general strike of workers began in the Mangistau region, which soon spread to other regions of the country. In the former capital of Kazakhstan, Almaty, clashes erupted between protesters and repressive forces; there are tens or even hundreds of people killed and wounded. During the protests, disadvantaged people, primarily young unemployed and internal migrants, committed acts of popular expropriation, destroying many large shopping centers, shops and bank branches. In a number of cases, the troops refused to open fire on the rebels.

By J. Mijin Cha, Dimitris Stevis, Todd E. Vachon, Vivian Price, and Maria Brescia-Weiler - Labor Network for Sustainability, January 2022

This paper argues that labour and community-led advocacy efforts towards a just transition are fundamental to delivering the promises of a Green New Deal (GND) and a just post-carbon world. To this end, an ambitious, far-reaching project was launched by the Labor Network for Sustainability, a non-governmental organization dedicated to bridging the labor and climate movements, in Spring 2020 called the “Just Transition Listening Project’’ (JTLP).

Over the course of several months, the JTLP interviewed over 100 individuals, including rank-and-file union members, union officials, environmental and climate justice advocates, and Indigenous and community advocates to understand what makes transition “just,” what opportunities exist for a broad coalition to advance a GND-style proposal, and to document the struggles facing working people and communities across the U.S. In doing so, we utilize the tools of political geography to examine the politics of spatiality, networks, and scale as well as the geographical and spatial dimensions of policy and political-economic institutions. We are particularly mindful of two spatial dynamics.

First, that transition policies, particularly in a hegemonic country like the USA, have global implications. The industrial transition that took place from the 1970s to the 1990s, for example, bred nativism because it cast other countries as the cause of the problem.

Second, critical geographers have pointed out that environmental justice (EJ) has been neoliberalized in the U.S. as a result of its operationalization, spatialization, and administration, starting with the Clinton Administration. Because JT is rising on the national and global agendas, we pay close attention to whether these dynamics that affected EJ are also operating with respect to JT, as well as how they can be contained.

This research is particularly timely given the ongoing federal governmental efforts to contain the spread of COVID-19 and provide basic economic and social supports. The process of the JTLP parallels the goals of the GND–intersectional efforts rooted in community knowledge for the development of a people-led GND. This paper details the process of the JTLP and the prospects for intersectional, broad-based movements that are the only way a GND can be realized.

Read the text (Link).

By Lara Skinner, J. Mijin Cha, Avalon Hoek Spaans, Hunter Moskowitz, and Anita Raman - The Worker Institute and The ILR School, January 2022

A new report released today by climate and labor experts at Cornell University in collaboration with the Climate Jobs Rhode Island Coalition outlines a comprehensive climate jobs action plan to put Rhode Island on the path to building an equitable and resilient clean-energy economy.

The report lays out a series of wide-ranging policy recommendations to transition the Ocean State’s building, school, energy, transportation, and adaptation sectors to renewable energy with the strongest labor and equity standards. Core provisions of the plan include decarbonizing the state’s K-12 public school buildings, installing 900 MW of solar energy statewide, 1,300 MW of offshore wind energy, and modernizing the state’s electrical grid by 2030. 

“Rhode Island is in a unique position as a state, in 2019 it had the lowest energy consumption per capita across all the United States. Rhode Island can use climate change as an opportunity to eliminate carbon emissions, increase equity, and create high-quality jobs that support working families and frontline communities,” says Avalon Hoek Spaans, Research and Policy Development Extension Associate for the Labor Leading on Climate Initiative at the Worker Institute, Cornell ILR School and one of the authors of the report.

The Worker Institute’s Labor Leading on Climate Initiative in partnership with the Climate Jobs National Resource Center, and Climate Jobs Rhode Island, began a comprehensive research, educational, and policy process in early 2021 to develop an implementation framework to drastically reduce emissions in the state while creating high-quality union family sustaining jobs.

Over the past year, the Labor Leading on Climate team has conducted outreach to numerous leaders of the labor and environmental movements as well as policymakers and experts in the climate, energy, and labor fields to better understand the challenges and opportunities that climate change and climate mitigation and adaptation presents to Rhode Island workers and unions.

“With Rhode Island on the frontlines of the climate crisis, it will take bold, ambitious action to combat climate change and reduce greenhouse gas emissions and pollution to the levels that science demands. Fortunately, tackling climate change is also an opportunity to address the other crises Rhode Island is facing: inequality and pandemic recovery,” says Lara Skinner, Director, Labor Leading on Climate Initiative, at the Worker Institute, Cornell ILR School and one of the authors of the report.

“As a small state with one of the lowest emissions in the country, Rhode Island can be innovative and efficient, employing cutting-edge approaches to reverse climate change and inequality. Rhode Island has the potential to be the first state in the country to fully decarbonize and build out a net zero economy with high-quality union jobs. This would make Rhode Island's economy stronger, fairer, and more inclusive,” says Lara Skinner, Director, Labor Leading on Climate Initiative, at the Worker Institute, Cornell ILR School and one of the authors of the report.

Read the text (PDF).

By Elizabeth Perry - Work and Climate Change Report, December 9, 2021

International recruitment firm Brunel International and Oilandgasjobsearch.com released the latest version of their annual survey on November 30, showing key employment trends such as recruitment challenges, compensation, energy transition, job engagement, and retention in the global energy sector. Energy Outlook Report 2021-2022 is summarized with key highlights here , including that more than half of the oil and gas workers surveyed want to work in the renewable energy sector – a sentiment stronger amongst workers ages 25 – 29 years old. The survey also highlights a high degree of “job volatility” in the wider energy and extraction sector, with 44% of workers in oil and gas, 42% each in mining, power, and renewables, and 39% in nuclear saying they were looking for a career change in the next five years. The full survey is available for download here.

Although not as widely reported, a Canadian survey in the summer of 2021 showed a similar appetite for career change. Iron and Earth, the Canadian organization of fossil fuel workers whose mission is “to empower fossil fuel industry and Indigenous workers to build and implement climate solutions” , commissioned Abacus Data to conduct a survey of 300 Canadians working in the oil, gas or coal industry. The survey report probed general attitudes to a net zero economy, but more particularly asked about attitudes and motivations to skills training and retraining, with breakdowns by age, gender, Indigenous/minority status, and region. The top level finding: 69% of all the workers surveyed were very interested or somewhat interested in “making a career switch to, or expanding your work involvement in, a job in the net-zero economy”. These findings are consistent with an anecdotal report “Workers Pick Job Stability Over Higher Wages as Oil Rig Operator Scrambles for Crews” (The Energy Mix, Sept. 14), which reports on the recruitment difficulties of the oil and gas industry. The article quotes the head of the Canadian Association of Energy Contractors, who speaks of shift in the industry, “citing the premium many younger workers place on work-life balance, along with the federal government’s talk about just transition legislation.”

That same Canadian Association of Energy Contractors released their industry forecast for 2022 in November. It reports that drilling activity for oil and gas wells has “bounced back” from an all-time low in June 2020, and “total jobs in 2021 were up 54 per cent year-over-year from 2020, with an increase of 9,734 jobs. In 2022, CAOEC expects another increase of approximately 7,280 total jobs to 34,925, a 26 per cent increase year-over-year.” However, clearly oil and gas workers are right to be concerned about job stability, as the CAOEC continues: “In comparison to 2014, we anticipate total jobs will still be a loss of 56 per cent from the peak of 78,793 total jobs in 2014.”

By Bruce Wilson and Shea Sinnott - Centre for Social Innovation, December 4, 2020